2002 Regular Legislative Session Report on Issues of Interest to April 2002 4/10/02 2 2002 Regular Legislative Session Report on Issues of Interest to Enterprise Florida, Inc. - Index - Policy Area Legislation Page Economic Development SB 386 - Black Business Investment Board 3 SB 688 - Florida Space Authority 3 SB 777 - Public Records Exemption 3 HB 1307 – Florida Building Code 3 HB 1341 – Community Redevelopment / Brownfield’s 4 SB 1794 - Enterprise Zones 4 SB 1844 - Technology Development Act 4 SB’s 1906 & 550 – Growth Management 6 SB 1912 - Defense Contractors 6 Transportation & State Procurement and Permitting HB 261 - Transportation 7 HB 329 - Small Aircraft 7 HB 813 - Everglades / Expedited Permitting 7 HB 1977 - State Procurement / High-Speed Rail 7 Workers’ Compensation & Taxation SB 108 - Workers’Compensation 7 SB 426 - Tax Administration 8 HJR 833 - Tax Reform 8 SB 2028 - Corporate Income Tax Update 9 Trust Fund Reenactment SB’s 846, 848, 850 & 852 9 2002 Regular Legislative Session Report on Issues of Interest to Enterprise Florida, Inc. 4/10/02 3 Economic Development CS/CS/CS/SB 386 - Florida Black Business Investment Board The bill substantially modifies the Florida Black Business Investment Board (BBIB) and removes it from the OTTED, while providing for the creation of the BBIB as a not-for-profit corporation. The bill assigns two new BBIB responsibilities which interrelate directly with Enterprise Florida, Inc. (EFI). They are: o Delivering - where practicable - economic development services relating to black business enterprises under a contract with EFI; and o Working with EFI and local economic development organizations to promote the recruitment, formation, retention and expansion of new and existing black business enterprises. CS/SB 688 – Florida Space Authority The bill changes the statutory name of the Spaceport Florida Authority to “Florida Space Authority”. It makes many changes to the Florida Space Authority Board of Supervisors and the Spaceport Management Council, including revising the membership, mission, administration and reporting requirements. CS/HB 777 – Public Records Exemption for Business Information The bill creates a public records exemption for specified business information compiled under the CITC, QDC, QTI, HIPI, and QAC state economic development incentive programs. This business information (including certain proprietary, trade-secret, and personal data), will be confidential and exempt from the public records law if held by Enterprise Florida, Inc. (EFI); the Governor’s Office of Tourism, Trade, and Economic Development (OTTED); county or municipal governmental entities; or the employees or agents of OTTED, EFI, or local government entities. The bill authorizes economic development program administrators to publish statistics in the aggregate and classified as to prevent the identification of a single qualified business. CS/HB 1307 – Florida Building Code This comprehensive legislation addresses many issues relating to the Florida Building Code (FBC) development and administration. Issues of interest to EFI include requirements that the Florida Building Commission: o Grant a waiver from the accessibility requirements of the FBC if the applicant demonstrates an economic hardship in accordance with federal law; and 2002 Regular Legislative Session Report on Issues of Interest to Enterprise Florida, Inc. 4/10/02 4 o Establish an informal process of rendering non-binding interpretations of the FBC. HB 1341 – Community Redevelopment Agencies / Brownfield Refunds This is a clarifying bill that revises statutory provisions relating to community redevelopment agencies (CRA), and the Brownfield redevelopment bonus refund program. Community Redevelopment Agencies - The CRA provisions include more restrictive definitions for “slum area” and “blighted area”. As well as, clarifying language on the governance of the CRAs. Brownfield Refunds - The bill also increases the number of business potentially eligible for Brownfield redevelopment bonus refunds. It accomplishes this by replacing certain wage requirement thresholds with a criterion that: an eligible business provides benefits to its employees; and distinguishes between Brownfield redevelopment bonus refunds to QTI businesses and other eligible businesses. Specifically, the bill defines other eligible businesses as those businesses with a fixed capital investment of at least $2 million in mixed use business activities and who provide benefits to their employees. The bill further provides that a bonus refund of up to $2,500 must be allowed for each new Florida job created in a Brownfield. The amount of the refund must be equal to 20 percent of the average annual wage for the jobs created. SB 1794 – Enterprise Zones The bill authorizes specified counties to apply to the OTTED by December 31, 2002, to amend their existing enterprise zones by replacing areas not suitable for development with areas suitable for development. The counties authorized are: Alachua, Broward, Hendry, Highlands, Jackson, Palm Beach and Volusia Counties. CS/SB 1844 – Economic Development The bill modifies several programs. Of interest to economic development experts are amendments to three economic development initiatives and the creation of two new programs to be known as the Florida Technology Development Act, and the Tourism Industry Recovery Act of 2002. 2002 Regular Legislative Session Report on Issues of Interest to Enterprise Florida, Inc. 4/10/02 5 Florida Technology Development Act - The Florida Technology Development Act establishes a process for the State Board of Education to develop, approve and authorize expenditures for a plan for establishing one or more “centers of excellence” at or in collaboration with universities in the state. The term “centers of excellence” is defined as an organization of personnel, facilities and equipment which, among its functions, identifies and pursues opportunities for research and technology transfer, recruits and retains world-class researchers, and stimulates and supports the growth of the state’s technology industry. The process created by this bill includes the creation of the Emerging Technology Commission for the purpose of recommending preliminary plans to the Board for consideration. When developing plans, the Commission must consider certain input from the Florida Research Consortium, Inc. Members of the EFI Technology Leadership Council, along the council manager are participating members of the Consortium. Tourism Industry Recovery Act of 2002 – The bill authorizes the revenues from the additional local option tourist development tax to also be used to promote and advertise tourism. Technology Program Review - The bill requires the Legislature’s Office of Program Policy Analysis and Government Accountability (OPPAGA) to conduct, before the December 1, 2002, the review required under section 14 or Chapter 93-187, L.O.F., relating to the sunset of certain Enterprise Florida, Inc. program evaluation and justification review criteria. Internet-Based System for the State Information Technology Industry - The bill reassigns responsibility for the development and maintenance of a website for information technology industry promotion and workforce recruitment to Workforce Florida, Inc. (WFI), from the Department of Labor and Employment Security. The bill charges WFI with ensuring coordination and compatibility between the website and the larger workforce information system. Furthermore, the bill requires WFI to coordinate its work with the high-technology marketing campaign of Enterprise Florida, Inc., and the State Technology Office effort’s to ensure consistency with the state’s information system strategy and enterprise architecture. 2002 Regular Legislative Session Report on Issues of Interest to Enterprise Florida, Inc. 4/10/02 6 Bond-Financed Projects in Research and Development Parks - The bill provides that projects located in a research and development park that are financed through the Florida Industrial Development Financing Act may be operated by a research and development authority, a state university, a state community college, or a governmental agency if the purpose and operation of the projects are consistent with the policies governing research and development authorities. CS/SB’s 1906 & 550 – Growth Management This bill makes numerous changes to the Local Government Comprehensive Planning and Land Development Act, and the Development-of-Regional-Impact program. A major purpose of the bill is to increase coordination between school districts and local governments in the planning of educational facilities. Provisions of interest to EFI include amendments providing for: o Reduction from a two-step to a one-step process for adoption of local government comprehensive plans or plan amendments; o Governance changes to include specific standards for the density or intensity of use allowed in each land category to clarify that the standards must be related to the control and distribution of population densities and building and structure intensities; o Local government authority to issue a waiver from the concurrency requirement for urban infill and redevelopment areas, if such waiver does not endanger public health or safety; and o Coordination of the roles of local governments and Water Management Districts in regional water supply planning. CS/SB 1912 – Defense Contractors The bill revises the eligibility criteria for the QDC. It increases the number of businesses potentially eligible for the program by: o Expanding the meaning of the term “Department of Defense contract” to include competitively bid DOD subcontracts, competitively bid federal agency subcontracts issued on behalf of the DOD, and contracts or subcontracts for the products or services for military use which contracts or subcontracts are approved by the DOD, the US Department of State, or the US Coast Guard; and o Reducing various gross-receipt thresholds that applicants must meet or exceed in order to qualify for review by the OTTED. 2002 Regular Legislative Session Report on Issues of Interest to Enterprise Florida, Inc. 4/10/02 7 Transportation & State Procurement and Permitting CS/HB 261 - Transportation The bill is a comprehensive transportation package that consists of the substance of many transportation bills. Including issues relating to: o Commercial Trucks; o Turnpike Enterprise; and o Billboards. HB 329 – Small Aircraft This bill makes Florida a participant in the Small Aircraft Transportation System (SATS) project. Thus Florida will be part of the SATS strategy focusing on airborne technologies that expand the use of airports with excess capacity as well as underutilized, unmanaged airspace for transportation use. HB 813 – Everglades Restoration / Expedited Permitting Process The bill, among its provisions relating to the Everglades restoration, amends the Environmental Protection Act to prohibit citizens from using the act to initiate administrative proceedings under the Administrative Procedures Act. HB 1977 – State Procurement / High-Speed Rail / Transportation Issues This bill includes provisions recommended as a result of an interim study on the new methods of state procurement. Enacted by the bill are issues relating to: o Invitations to Negotiate; o Requests for Quotes; o Notice of Procurement Decisions and Protests; o High-Speed Rail Authority; and o Transportation Issues. Workers’ Compensation & Taxation CS/CS/SB 108 – Workers’ Compensation This bill provides significant changes to the workers’ compensation system that are designed to expedite the dispute resolution process, eliminate exemptions from coverage for most commercial construction job sites, provide greater enforcement authority for the Division of Workers’ Compensation to enforce exemption and coverage requirements, and reduce costs for the overall administration of the workers’ compensation system. The changes include issues relating to: o Informal dispute resolution; 2002 Regular Legislative Session Report on Issues of Interest to Enterprise Florida, Inc. 4/10/02 8 o Formal dispute resolution; o Medical fees and medical cost containment; and o Exemptions from workers’ compensation coverage. CS/SB 426 – Tax Administration This bill includes the Department of Revenue’s general tax administration bill and the recommendations of the State Tax Reform Task Force and the Tax Section of The Florida Bar. Some of the bills major provisions are listed herein: o For sales tax purposes the bill replaces the definition of certain machinery and equipment with a definition that is consistent with a past federal explanation of the term; o Provides for consistent treatment under the sales tax statutes for vessels, railroads, and motor vehicles engaged in interstate or foreign commerce; o Extends for an additional 3 years, from 2003 to 2006, the sales tax exemptions awarded to facilities such as civic centers, convention halls, stadiums and performing arts centers; and o Reenacts the aviation fuel tax credit for certain airlines. CS/CS/HJR 833 – Resolution to Create a Joint Committee to Review Florida’s Sales and Use Taxation Laws If approved by the voters in the November 5, 2002, general election, this constitutional amendment will take effect on that date and create a Joint Committee consisting of six Senators appointed by the President of the Senate and six Representatives appointed by the Speaker of the House. The committee is charged to review all exemptions from the sales and use tax and all exclusions of sales of services from the sales and use tax. No later than the end of the next session in May 2003, the Legislature must agree on joint rules to govern this committee. These rules must establish a schedule for review of such exemptions and exclusions and provide criteria to be considered by the committee in conducting its review. Over the next three years, the committee must meet to review all exemptions and exclusions from the tax. The committee must submit it is findings and recommendations to the presiding officers of each house of the Legislature no later than March 1 of 2004, 2005, and 2006. The committee may decide to repeal an exemption or exclusion from the sales and use tax by a vote of seven members of the committee. A decision to de- authorize or repeal an exemption or exclusion is codified in the form of a resolution and submitted to the Legislature. The Legislature then has two regular sessions to consider the resolution. If the Legislature believes the exemption should be reinstated or the exclusion should be re-authorized, the Legislature can reinstate it by a simple majority of both chambers. 2002 Regular Legislative Session Report on Issues of Interest to Enterprise Florida, Inc. 4/10/02 9 If the Legislature concurs with the committee’s recommendations and takes no action, on July 1, following the second regular session after the committee’s finding, the repeal of the exemption or the de-authorization of the exclusion becomes law. The Joint Committee is dissolved July 1, 2006. SB 2028 – Corporate Income Tax Update This bill updates the Florida Income Tax Code to reflect changes Congress made to the US Internal Revenue code of 1986. Annual bills to update the Florida Income Tax Code are drafted with the intent of “piggybacking” congressional amendments to the federal taxable income laws. This practice provides for consistency in federal/state corporate income tax laws. At present time (April 7, 2002), conflicting legal interpretations exist over the implementation of SB 2028 and whether or not it incorporates the provisions of the new federal, ”Job Creation and Worker Assistance Act of 2002” passed in March 2002. This act contains a provision known as a “bonus” depreciation allowance. This bonus includes a retroactive effective date for investments made after September 10, 2001. It is estimated that the bonus depreciation allowance could save Florida’s corporations $272 million is tax savings. To resolve this legal disagreement, the Florida Legislature could enact clarifying or corrective language, or the Florida Judicial branch could issue an opinion. Trust Fund Reenactment SB 846 – Economic Development Transportation Trust Fund SB 848 – Economic Development Trust Fund SB 850 – FL International Trade and Promotion Trust Fund SB 852 – Grants and Donations Trust Fund For bill text and more information visit MyFlorida.com and Online Sunshine or contact: Lindy L. Kennedy, Governmental Relations Manager Capitol Hill Group, LLP firstname.lastname@example.org 850/201-2075 ext. 4 2002 Regular Legislative Session Report on Issues of Interest to Enterprise Florida, Inc.
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